Chapter 9 · • Wireless Local Area Networks wireless local area network ... Mobile wireless computing devices for employees ... The integration of computers and wireless

Chapter 9Mobile Commerce andPervasive Computing

Electronic Commerce Prentice Hall © 2006 2

Learning Objectives

1. Define mobile commerce and understand its relationshipto e-commerce.

2. Understand the mobile computing environment thatsupports m-commerce.

3. Describe the four major types of wirelesstelecommunications networks.

4. Discuss the value-added attributes and fundamentaldrivers of m-commerce.

5. Discuss m-commerce applications in finance,advertising, and provision of content.


Learning Objectives

6. Describe the application of m-commerce withinorganizations.

7. Understand B2B and supply chain managementapplications of m-commerce.

8. Describe consumer and personal applications of m-commerce.

9. Understand the technologies and potential application oflocation-based m-commerce.

10. Describe the major inhibitors and barriers ofm-commerce.

11. Discuss the key characteristics and current uses ofpervasive computing.


Mobile Computing

• Overview of Mobile Commercemobile commerce (m-commerce, m-business)Any business activity conducted over a wirelesstelecommunications network


Exhibit 9.1 The Mobile CommerceLandscape


Mobile Computing

• Mobile Computing Devicespersonal digital assistant (PDA)A handheld computer principally used for personalinformation managementsmartphoneInternet-enabled cell phones that can support mobileapplicationsblackberryA handheld device principally used for e-mail


Mobile Computing

• Mobile Computing Deviceswireless mobile computing (mobile computing)Computing that connects a mobile device to anetwork or another computing device, anytime,anywheresynchronizationThe exchange of updated information with othercomputing devices


Exhibit 9.2 The Wireless MobileEnvironment


Mobile Computing

• Mobile Computing SoftwaremicrobrowserWireless Web browser designed to operate with smallscreens and limited bandwidth and memoryrequirements

Wireless Application Protocol (WAP)A suite of network protocols designed to enabledifferent kinds of wireless devices to accessWAPreadable files on an Internet-connected Webserver


Mobile Computing

Wireless Markup Language (WML)A scripting language used to create content in theWAP environment; based on XML, minusunnecessary content to increase speed

Compact Hypertext Markup Language (cHTML)A scripting language used to create content in i-mode


Mobile Computing

Extensible Hypertext Markup Language (xHTML)A general scripting language; compatible with HTML;set by W3 Consortium

Voice XML (VXML)An extension of XML designed to accommodate voice


Exhibit 9.4 WAP Architecture


Mobile Computing

• Mobile Computing ServicesShort Message Service (SMS)A service that supports the sending and receiving ofshort text messages on mobile phonesEnhanced Messaging Service (EMS)An extension of SMS that can send simple animation,tiny pictures, sounds, and formatted textMultimedia Messaging Service (MMS)The next generation of wireless messaging; MMS willbe able to deliver rich media


Mobile Computing

• Mobile Computing Services

micropaymentsElectronic payments for small-purchase amounts(generally less than $10)

global positioning system (GPS)A worldwide satellite-based tracking system thatenables users to determine their position anywhereon the earth


Mobile Computing

• Mobile Computing Services

interactive voice response (IVR)A computer voice system that enables users torequest and receive information and to enter andchange data through a telephone

voice portalA Web site with an audio interface that can beaccessed through a telephone call


Wireless Telecommunications Networks

• Personal Area Networkspersonal area network (PAN)A wireless telecommunications network for device-to-device connections within a small range

BluetoothA set of telecommunications standards that enableswireless devices to communicate with each other overshort distances



• Wireless Local Area Networkswireless local area network (WLAN)A telecommunications network that enables users tomake medium-range wireless connections to theInternet or another network

Wi-Fi (wireless fidelity)The common name used to describe the IEEE 802.11standard used on most WLANs



• Wireless Local Area Networks802.11bThe most popular Wi-Fi standard; it is inexpensiveand offers sufficient speed for most devices; however,interference can be a problem802.11aThis Wi-Fi standard is faster than 802.11b but has asmaller range802.11gThis fast but expensive Wi-Fi standard is mostly usedin businesses



• Wireless Local Area Networks

wireless access pointAn antenna that connects a mobile device to a wiredLAN

hotspotAn area or point where a wireless laptop or PDA canmake a connection to a wireless local area network


Exhibit 9.5 How Wi-Fi Works



• Wireless Metropolitan Area Networks

WiMaxA wireless standard (IEEE 802.16) for makingbroadband network connections over a large area

wireless metropolitan area network (WMAN)A telecommunications network that enables users tomake long-range wireless connections to the Internetor another network



• Wireless Wide Area Networks

wireless wide area network (WWAN)A telecommunications network that offers wirelesscoverage over a large geographical area, typicallyover a cellular phone network



• Wireless Wide Area Networks– Physical Topology of a WWAN

subscriber identification module (SIM) cardAn extractable storage card used foridentification, customer location information,transaction processing, secure communications,and the like


Exhibit 9.6 Cellular Telephone Network



– WWAN Communication Bandwidths• 1G. The first generation of wireless technology, which

was analog based• 2G. The second generation of digital wireless

technology; accommodates voice and text• 2.5G. An interim wireless technology that can

accommodate voice, text, and, limited graphics• 3G. The third generation of digital wireless technology;

supports rich media such as video• 4G. The expected next generation of wireless

technology that will provide faster display of multimedia



• Wireless Wide Area Networks– WWAN Communication Protocols

• Frequency Division Multiple Access (FDMA)• Time Division Multiple Access (TDMA)• Code Division Multiple Access (CDMA)

– WWAN Network SystemsGlobal System for Mobile Communications (GSM)An open, nonproprietary standard for mobile voice and datacommunications


Mobile Commerce

• Attributes of M-Commerce– Ubiquity– Convenience– Interactivity– Personalization– Localization


Mobile Financial Applications

• Mobile Banking• Wireless Electronic Payment Systems

– Wireless Walletsm-wallet (mobile wallet)Technologies that enable cardholders to makepurchases with a single click from their wirelessdevice

• Wireless Bill Payments– A number of companies now provide the option of

paying bills directly from a cell phone


Mobile Shopping, Advertising, andContent Provision

• Wireless Shopping– An increasing number of online vendors allow

customers to shop from wireless devices– Enables customers to use cell phones or wireless

PDAs to:• Perform quick searches• Compare prices• Use a shopping cart• Order• View the status of their order


Mobile Shopping, Advertising, andContent Provision

• Targeted Advertising

– Marketers send user-specific advertising messages towireless devices

– Location-sensitive advertising informs buyers aboutshops, malls, and restaurants close to where themobile device owner is locatedmobile portalA customer interaction channel that aggregatescontent and services for mobile users


Mobile Intrabusiness Applications

• Support of Mobile Employeessales force mobilizationThe process of equipping sales force employeeswith wireless computing devices

– Job Dispatchwearable devicesMobile wireless computing devices for employeeswho work on buildings and other climbableworkplaces



• Customer SupportMobile access extends the reach of CRM to bothemployees and business partners on a 24/7 basis, toany place where recipients are located



• Non-Internet Intrabusiness Applications– Wireless networking, used to pick items out of storage

in warehouses– Delivery-status updates– Collection of data– Monthly pay slips sent as SMS messages sent to

employees’ mobile phones– Property adjusters report from the scene of an

accident– Sales representatives check orders and inventories

during their visits to customers


B2B M-Commerce and Supply ChainManagement

• Use of wireless communication to share informationalong the supply chain and to collaborate with partners

• By integrating the mobile computing device into supplychain communications, it is possible to:

– Make mobile reservations of goods– Remotely check availability of a particular item in the warehouse– Order a customized product from the manufacturing department– Provide secure access to confidential financial data from a

management information system


Mobile Consumer and Personal ServiceApplications

• Mobile Games• Wireless Telemedicine• Other Mobile Computing Services for

Consumers• Non-Internet Mobile Applications for Consumers


Location-Based Mobile Commerce

location-based m-commerceDelivery of m-commerce transactions to individuals in aspecific location, at a specific time

• The services provided through location-basedm-commerce focus on five key areas:

– Location– Navigation– Tracking– Mapping– Timing



Global Positioning System (GPS)A worldwide satellite-based tracking system thatenables users to determine their positionanywhere on the earth

geographical information system (GIS)An information system that integrates GPS dataonto digitized map displays



• Emergency Response Cell Phone Calls

wireless 911 (e-911)In the United States, emergency response calls fromcellular phones

automatic crash notification (ACN)Device that automatically sends the police thelocation of a vehicle that has been involved in a crash



telematicsThe integration of computers and wirelesscommunications to improve information flow using theprinciples of telemetry

• Barriers to Location-Based M-Commerce– Accuracy of devices– The cost-benefit justification– Limited network bandwidth– Invasion of privacy


Security and Other Barriers to MobileCommerce

• M-Commerce Security Issues– Malicious Code– Transaction Security– Wireless Communication– Physical Security of Mobile Devices– Ease of Use

• Technological Barriers to M-Commerce• Ethical, Legal, and Health Issues in

M-Commerce


Security and Other Barriers to MobileCommerce

• Project Failures in M-Commerce– Do not start without appropriate infrastructure– Do not start a full-scale implementation; use a small pilot for

experimentation– Pick an appropriate architecture (e.g., some users do not need

to be persistently connected)– Talk with a range of users, some experienced and some not,

about usability issues– Users must be involved; hold biweekly meetings if possible– Employ wireless experts– Wireless is a different medium from other forms of

communication. Remember that people are not used to thewireless paradigm


Pervasive Computing

• Overview of Pervasive Computingpervasive computingInvisible, everywhere computing that is embedded inthe objects around us

– Principles of Pervasive Computing• Decentralization• Diversification• Connectivity• Simplicity


Pervasive Computing

• Overview of Pervasive Computingcontextual computingThe enhancement of a user’s interactions byunderstanding the user, the context, and theapplications and information required


Pervasive Computing

• Pervasive Computing Initiativesradio frequency identification (RFID)Technology that uses radio waves to identify items

electronic product code (EPC)An RFID code that identifies the manufacturer,producer, version, and serial number of individualconsumer products


Pervasive Computing

• Pervasive Computing Initiatives– Smart Homes

• Lighting• Energy management• Water control• Home security and communications• Home entertainment

– Smart Appliances– Smart Cars– Smart Clothes


Pervasive Computing

• Pervasive Computing Initiativessensor networkA series of interconnected sensors that monitor theenvironment in which they are placed

– Sensor networks can:• Protect the environment• Public safety• Monitor business and agricultural areas


Pervasive Computing

• Barriers to Pervasive Computing– For pervasive systems to be widely deployed, it is

necessary to overcome many of the technical, ethical,and legal barriers associated with mobile computing


Managerial Issues

1. What’s our timetable?2. Which applications first?3. Is it real or just a buzzword?4. Which system to use?


Summary

1. What is m-commerce?2. Characteristics of mobile devices.3. Wireless software development is difficult.4. M-commerce support services.5. Wireless telecommunications networks.6. Value-added attributes of m-commerce.7. Drivers of m-commerce.


Summary

8. Finance, advertising, and content-providingapplications.

9. Intrabusiness applications.10.B2B and SCM applications.11.Consumer applications.12.Location-based commerce.13.Limitations of m-commerce.14.Pervasive computing.

Documents

Chapter 9 · • Wireless Local Area Networks wireless local area network ... Mobile wireless computing devices for employees ... The integration of computers and wireless